Define: Class A Shares

UK Accounting Glossary

Definition: Class A Shares



Advertisement



Full Definition of Class A Shares


Class A shares of stock are generally thought of as a preferred tier of classified stock. In many companies, Class A shares have greater voting rights than Class B shares or any other class of shares. One reason for creating this disparity in voting rights between classes of stock is to insulate company management, typically the owners of Class A shares of stock, from retail investors on Wall Street. Many companies do not offer Class A shares to the general public nor are Class A shares freely traded; only management can own Class A shares and their additional voting rights. However, it must be remembered that not all companies treat Class A shares the same way. In an effort to sell shares, some companies call their regular shares of stock Class A shares in an attempt to trick the general public into purchasing what is perceived to be preferred stock.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/class-a-shares/
Modern Language Association (MLA):
Class A Shares. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 25, 2020 https://payrollheaven.com/define/class-a-shares/.
Chicago Manual of Style (CMS):
Class A Shares. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/class-a-shares/ (accessed: February 25, 2020).
American Psychological Association (APA):
Class A Shares. PayrollHeaven.com. Retrieved February 25, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/class-a-shares/

Definition Sources


Definitions for Class A Shares are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.